Competitive Advantages

In the pitch, investors look for the startup’s competitive advantage.

“Me too” companies are more difficult to fund because they have few if any competitive advantages.

A true competitive advantage increases your revenue by 30% or reduces your cost by the same amount.

Here’s a short list of potential competitive advantages you can build into your startup:

– Unique and compelling technology. This gives your product or service additional features and capabilities.
– Intellectual property including patents, trade secrets, and trademarks. This provides legal protection for your product.
– Network effects. This can come from a platform approach, data collection, or marketplace creation which both reduces costs and increases awareness.
– Strong brand. This provides better name recognition resulting in a lower cost of customer acquisition.
– Virality. This increases sales without an equivalent increase in costs.
– Exclusive channel access. Access to customers that competitors do not have is also a competitive advantage.

Consider how you can incorporate one of these into your startup.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.